Most of the Problems Caused by Inflation Are Caused by the Fact

question 51

Multiple Choice

Most of the problems caused by inflation are caused by the fact that

• A)there are no ways available for people to protect themselves against inflation.
• B)anticipated inflation induces people to protect themselves against the inflation.
• C)inflation causes the purchasing power of the dollar to increase.
• D)the inflation is often unanticipated,and therefore comes as a surprise to individuals in the economy.

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Definitions:

Retirement Plan

A financial strategy designed to provide individuals with income or assets to rely on after they have ceased working, often involving savings, investments, and other financial products.

Compounded Semi-annually

This refers to the practice of applying interest to an existing amount plus any accumulated interest twice yearly.

Monthly Mortgage

A regularly scheduled payment which includes principal and interest owed on a mortgage.

Loan Payment

A payment made to reduce the outstanding balance of a loan, often made on a monthly basis.